New York State’s budget problems continue. This week, state Budget Director Robert Megna told state agency heads to “assume zero growth” in their spending plans for the next two fiscal years as the state works to address long-term deficits.

He instructed agencies to request level funding for the coming year, and said that any requests to fund new initiatives must be offset by corresponding reductions elsewhere in an agency’s budget.

Given the fact that New York’s fiscal situation remains precarious – the most recent state cash report shows state tax receipts through August 2012 as $147 million below projections – we will need to see the state hold the line on spending for a third consecutive year.